Intel remains optimistic that the chip industry would grow this year after its worst ever year in 2001, Intel’s newly-elected president and chief operating officer Mr Paul Otellini said today.
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Last Thursday, Intel narrowed its first quarter sales forecast to between $6.6 billion and $6.9 billion from an earlier range of $6.4 billion to $7.0 billion.
"That's a fairly strong signal that things are a little bit better than we first thought," Mr Otellini said, though he declined to give further details.
"Last year was so poor that it is very likely the industry will grow year-on-year this year just because it's not shrinking," Mr Otellini told reporters during a visit to the company's plant in the northern Malaysian state of Penang.
"We are reasonably optimistic about this year. We believe that this year is going to play out in a seasonal pattern the way it has historically except for last year."
The technology bellwether's expectations of a brighter year underscore budding confidence in financial markets that the US economy is on the path to recovery, buoying global stocks.
Intel expects to invest more than $100 million this year in upgrading existing facilities at Leixlip Co Kildare where it employs over 3,000 people.
The company has yet to confirm whether it will proceed with its plans to restart construction on its $2 billion Fab 24 facility at in Leixlip.
Record sales of microprocessors, the brains of PCs, during the fourth quarter of 2001 showed things improving, he said.
"That was very comforting to see that level of volume after the abysmal first half of last year," Otellini said. "A lot of that cycle of inventory over-correction seems to have burned off. People are buying computers again," he added.